Rupee settles at record low of 95.73 against US dollar
Mumbai (PTI): The rupee weakened further and fell to a record low of 95.73 (provisional) against the US dollar on Thursday, amid a strong dollar and worries over inflation amid elevated energy prices.
Forex traders said the rupee is expected to trade with a negative bias amid inflation concerns and the strength of the US dollar in the overseas market.
The West Asia crisis and the blockade of the Strait of Hormuz have disrupted crude petroleum imports into India. Also, the sharp rise in crude prices has made fuel imports costlier.
The rupee has become the worst-performing currency in Asia for the year, registering a loss of over 6 per cent so far this year, as elevated crude oil prices, a strong dollar and concerns over the West Asia crisis weighed on investor sentiments, traders said.
At the interbank foreign exchange market, the rupee opened lower at 95.74 against the American currency.
In a volatile trade, the USD/INR pair witnessed an intra-day high of 95.61 and an all-time intraday low of 95.96 against the greenback before settling at 95.73 (provisional), down 7 paise from its previous close.
The rupee on Wednesday slipped to an all-time low of 95.80 against the US dollar, and settled at 95.66 against the greenback.
"We expect the rupee to trade with a negative bias amid inflation concerns and a strong dollar. Rising inflation in the US dimmed expectations of a rate cut by the Fed," said Anuj Choudhary, Research analyst at Mirae Asset ShareKhan.
Choudhary said geopolitical tensions between the US and Iran and foreign fund outflows may also pressurise the rupee.
However, any intervention by the RBI and import duty hike on gold and silver may support the rupee at lower levels. USD/INR spot price is expected to trade in a range of 95.50 to 96.10, Choudhary added.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 98.51, down 0.01 per cent.
Brent crude, the global oil benchmark, was trading higher by 0.50 per cent at USD 106.16 per barrel in futures trade.
On the domestic equity market front, Sensex jumped 789.74 points to settle at 75,398.72, while the Nifty climbed 277 points to 23,689.60.
Foreign Institutional Investors offloaded equities worth Rs 4,703.15 crore on Wednesday, according to exchange data.
On the domestic macroeconomic front, wholesale price inflation shot up to a 42-month high of 8.3 per cent in April on the back of a spike in energy prices that followed the disruptions caused by the West Asia conflict.
Wholesale price index (WPI) inflation was 3.88 per cent in March, while it was 0.85 per cent in April last year.
"Positive rate of inflation in April 2026 is primarily due to an increase in prices of mineral oils, crude petroleum & natural gas, basic metals, other manufacturing and non-food articles, etc," data released by the commerce and industry ministry showed.
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Nicobar Tribal Council Alleges FRA Violations in Great Nicobar Wildlife Sanctuaries
Sri Vijaypuram (Port Blair): The Tribal Council of Little and Great Nicobar has alleged fresh violations of the Forest Rights Act in the notification of three wildlife sanctuaries linked to the Centre’s ₹92,000-crore Great Nicobar Island project, even as the Calcutta High Court is set to hear petitions challenging the mega project over similar concerns next month.
The Union government had, in October 2022, notified three wildlife sanctuaries in parts of Little Nicobar Island, Menchal Island and Meroe Island for the conservation of leatherback turtles, megapodes and coral ecosystems. The move came after the government acknowledged that the proposed infrastructure project on Great Nicobar Island would affect coral colonies and nesting habitats of endangered species.
However, the tribal council has maintained that the sanctuaries were declared without consultation with the Nicobarese communities who traditionally inhabit and manage these islands.
In a letter dated April 23 addressed to the Assistant Conservator of Forests of the Nicobar Forest Division, the council reiterated its opposition to the sanctuaries and objected to the formation of a committee to determine eco-sensitive zones around the protected areas.
The council said its chairman had not been consulted before being included in the committee and was informed of his membership only a month after the committee was constituted.
The three notified sanctuaries include the Leatherback Turtle Sanctuary in parts of Little Nicobar Island, the Megapode Sanctuary covering the entire Menchal Island and the Coral Sanctuary spanning the whole of Meroe Island.
According to the council, Menchal and Meroe islands hold deep cultural and spiritual significance for the Nicobarese community, which believes the islands are inhabited by the spirits of their ancestors.
The council demanded that the sanctuary notifications be revoked and the eco-sensitive zone committee dissolved, alleging that both decisions were taken against the wishes of the indigenous community.
Meanwhile, Jairam Ramesh has written to Tribal Affairs Minister Jual Oram alleging violations of the Forest Rights Act in the process of obtaining consent for diversion of forest land for the Great Nicobar project.
Ramesh argued that consent should have been obtained through the Tribal Council representing the Nicobarese communities instead of through Gram Sabhas representing settler families. He also questioned how the government-controlled Andaman Adim Janjati Vikas Samiti could provide consent on behalf of the Shompen community, classified as a Particularly Vulnerable Tribal Group.
He urged the Tribal Affairs Ministry to intervene and seek withdrawal of clearances granted for the project under the Forest Rights Act.
Earlier, Ramesh had also written to Union Environment Minister Bhupender Yadav alleging that environmental impact studies for the project were conducted in haste and without the detailed seasonal assessments mandated under environmental laws.
The dispute dates back to 2022 when the Andaman and Nicobar administration initiated the process for notifying the three sanctuaries before holding Special Gram Sabhas for diversion of forest land linked to the Great Nicobar project.
In May that year, the administration invited objections and claims regarding the proposed sanctuaries. Subsequently, on July 19, the Nicobar Deputy Commissioner certified that no objections or claims had been received.
The tribal council later wrote to the district administration stating that the notification process was carried out without ensuring that residents of Little Nicobar Island were informed as required by law. It alleged that no public announcements seeking objections were made in villages such as Bahua, Muhincoihn and Kiyang, whose residents traditionally use and manage parts of the notified areas.
The council said the Nicobarese community had protected the islands and wildlife for generations through customary practices and traditional belief systems.
It further argued that the sanctuaries would interfere with long-standing rights over forests and coastal areas. They noted that these areas are used for rituals, plantations, collection of forest produce, construction of huts and canoes, harvesting medicinal plants and worship.
In November 2024, the council objected to draft Island Coastal Regulation Zone plans, demanding basic infrastructure, instead of proposed eco-tourism activities in the sanctuaries. The council demanded better public restrooms, jetties, water facilities, pathways, and mobile connectivity.
The Nicobar administration issued a clarification in May 2025, stating that the sanctuaries would not affect hunting rights available to Scheduled Tribes in the Nicobar Islands. The council, however, rejected the clarification, stating that their dependence on forests and coasts extended far beyond hunting activities.
Earlier this month, a Bench led by the Chief Justice of the Calcutta High Court dismissed preliminary objections raised by the Union government against petitions challenging the diversion of forest land for the Great Nicobar project. The matter has now been listed for final hearing in June.
